Tips Music Q2 FY27 Results (NSE: TIPSMUSIC)
Signal: Steady quarter
The read
The key inflection is margin: after Q1FY27's 50.3% operating margin and 4.7% PAT decline, Q2FY27 revenue growth accelerated to 34.6% YoY and operating margin recovered to 63.3%, lifting PAT 23.6% YoY to ₹65.74 crore; however, EPS growth of 8.2% lagged PAT growth and content acquisition cost remains elevated at ₹36.48 crore.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹120.06 Cr | +34.6% | +12.7% |
| EBIT | ₹74.98 Cr | +23.5% | |
| Net profit | ₹65.74 Cr | +23.6% | |
| EPS | ₹5.15 | +8.2% | |
| EBIT margin | 63.3% |
P&L walk
Standalone Q2FY27 revenue was ₹120.06 crore, up 34.6% YoY and 12.7% QoQ; EBIT rose 23.5% YoY to ₹74.98 crore and PAT rose 23.6% YoY to ₹65.74 crore, with the main sequential inflection coming from margin recovery after Q1FY27's 50.3% operating margin.
Key positives
- Revenue reached ₹120.06 crore, up 34.6% YoY and 12.7% QoQ, accelerating from 20.9% YoY growth in Q1FY27.
- Operating margin recovered to 63.3% from 50.3% in Q1FY27, a 13.0 percentage-point sequential improvement.
- PAT rose 23.6% YoY to ₹65.74 crore and 50.4% QoQ, reversing the Q1FY27 PAT decline.
- Operating cash flow was ₹118.30 crore in H1FY27, providing coverage for the ₹45.15 crore buyback outflow.
Key concerns
- EPS rose only 8.2% YoY to ₹5.15 versus 23.6% PAT growth, indicating dilution or a changed share-count/minority-interest denominator that requires monitoring.
- Acquisition and in-house music production cost was ₹36.48 crore in Q2FY27, up 65.3% YoY, keeping content investment a major earnings swing factor.
- Royalty expense was ₹88.04 crore, up 22.8% YoY and 51.0% QoQ, limiting the conversion of revenue growth into profit.
Research and educational content only. Not investment advice.